Five hundred million. Thats the number of claims in the ISO Claims Search database. Richard Boehning, ISO senior vice president, and a front line experienced claims pro, has understood all along the importance of this database to the NICB, and to the carriers as they run down the crooks who defraud the system.

SIUs will be grateful to ISO, and so will the insureds, who ultimately gain the benefit of stable pricing. Come to think of it, weve never mentioned in this column just how bright an idea it is for everyone in the industry to visit the ISO website and study it to learn the scope of this enviable entitys enterprise. Weve known many of the best and brightest at ISO " past and present " and enjoy watching their products work for the betterment of the insuring process. The website is www.iso.com.

Bill of the Month

The Bill of the Month Club selection for January is a creative attempt to prick insurers when bad faith is intensified. Senator Frank Padavan and Assemblyman Adriano Espaillat proposed a measure designed to hold insurance companies accountable for failing to treat policyholders fairly when disasters strike, citing the prolonged insurance disputes at Ground Zero as evidence that insurance companies too often try to avoid their responsibilities rather than live up to their promises (see full story in the January 16 Insurance Advocate e-Newsletter).

The bill enables policyholders to sue carriers who act in bad faith, putting teeth into the existing requirement that insurers deal fairly with their insured when a disaster strikes by making it clear they will pay a financial price if they do not. The legislation holds that, in the event of a catastrophic event that causes in excess of $1 billion of damages, insurers can be held liable for both interest and attorney fees if they act in bad faith. In the most egregious cases, the legislation would hold insurers liable for punitive damages.

In the legislation, bad faith is defined as when an insured that sues an insurer wins an award that is 20 percent or more above the settlement offer it received from the insurer. The wording is theirs.

Padavan reasoned, When faced with large claims, insurance companies too often would rather pay for lawyers to delay or reduce their responsibilities rather than pay what they owe. Unfortunately, without laws requiring insurers to deal with their policyholders in good faith in place, there is a strong economic incentive for companies to pay lawyers to fight claims rather than live up to their obligations. This legislation is designed to make sure that insurance companies have an economic incentive to do the right thing and make fair settlement offers to their customers.

Padavan said, When faced with a choice between a traffic ticket and the death penalty, insurance companies have been willing to risk the regulatory proceeding since regulators have been reluctant to take the drastic steps of suspending a company, which in turn would likely have to cut jobs in New York. We need more appropriate measures to hold these bad actors accountable and protect New Yorkers in the face of tragic events.

Around the State

PRI just wrote its 13,000th New York doctor, and now insures 40 percent, plus or minus, of the medical market. The company just reached 200 hospitals and medical facilities.

Interboro is out of rehab, in case you were on Mars and hadnt heard.

The life insurance lobby may need to gear up for a battle over IOLIs. Apparently, increasing regulatory scrutiny of investor-owned life policies is turning a favorable eye on some forms. The rev up initiative could be termed Rev IOLI.

Sorry to hear that Paul de Stefano the insurance agency M&A maven for so long, passed away over the New Years weekend. Paul founded the Harbor Capital Advisors and did a lot of good for a lot of people. R.I.P.

Lynbrook-based NGL Insurance reached its 40th year recently. Martin Greenfield, now 85 and semi-retired, has Jeff Greenfield " his son " and their partner, Ken Hehir, to perpetrate the south shore powerhouse. Jeff has contributed a lot to the industry as a volunteer in at least three associations of which we know, as head of PIANY, CIB, and as an active director of the IIABNY local association.